GP Global, a leading global energy-to-agriculture conglomerate, on Wednesday announced the acquisition of the lubricants assets of Grand Petroleum in Nigeria as it looks to expand and strengthen its presence in the African nation and the western part of the continent.
Grand Petroleum is part of the Nigerian conglomerate The Nosak Group.
"The acquisition includes assets such as - lubricants brand - HiSpeed and a state-of-the-art blending plant with an annual capacity of about 50,000 metric tonnes in Lagos, which includes storage tanks with a capacity of 6,000 kilolitres," the company said in a statement.
The acquisition, which includes the distributor network, further strengthens GP Global's presence in Nigeria and West Africa.
"Nigeria is one of the core markets for our lubricants and base oil business with a significant opportunity now opening up to expand our presence in Africa. We have already built a strong lubricant market share in India and the Middle East.
"Through local manufacturing and a strong distribution network in Nigeria, the acquisition will position us one of the fastest-growing global lubricants and base oil businesses," said Sudip Shyam, Global Head - Lubricants & Base Oil, GP Global.
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He said GP Global is fully committed to supporting the local economy and will focus on unlocking the true potential of the lubricants and base oil business in the continent through this strategic acquisition.
It will also strengthen the base oil market of GP Global by leveraging on the storage and ability to import premium base oils for distribution.
"This is a strategic acquisition by GP Global that will consolidate our presence in key African markets. The strong manufacturing competencies that we gain through the acquisition of a wide range of lubricants and the advantage we gain in base oil trade will add to our market share.
"With this acquisition, we aim to grow our business of oil and agricultural products as well as build a strong retail network in Africa," said Ajay Pandey, COO for Nigeria, GP Global.
GP Global will lead the operations of the newly acquired business with a strong team of Nigerians, several of them already part of the existing team.
The operations of the Nigerian company are certified by the Standards Organisation of Nigeria as part of the MANCAP (Mandatory Conformity Assessment).
It has built strong competencies in the manufacturing and sale of lubricant oils, toll blending, engine oils, hydraulic oils, automobile fuels and lubrication, industrial fuels and lubrication, and other specialty oils.
GP Global is also a leading lubricant player in the UAE and India, where it has high-end manufacturing units in the industrial and automotive lubricants sector.
The company recently announced setting up of a new blending plant in India and aims to process 500 million litres of lubricants across India, the Middle East, and West Africa this year.
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